Federal Reserve Chairman Jerome Powell said in a speech last month the central bank was moving forward in its efforts to research the benefits and risks associated with adopting a digital dollar, formally known as central bank digital currency (CBDC).
Although the Fed has not announced any plans to roll out a digital currency, Powell said the central bank has been “carefully monitoring and adapting” to innovations in payments technology. He added that the Fed plans to take “a leading role in developing international standards for CBDCs,” working with central banks and regulators in the U.S. and abroad.
“There is no question as to its value. Whether it’s the dollar in your wallet, the dollar in your savings account, or the central bank digital currency version of $1 in your digital wallet, all of them always equals $1,” David Treat, a senior managing director at Accenture, told Voice of America (VOA).
Using a digital dollar could be as simple as scanning a code on a mobile phone, and the digital cash would move from one account to another once the transaction is complete. Similar to mobile wallet services like Venmo or Apple Pay, a new U.S. currency would likely not be